Stadio gains 13% on JSE after double-digit growth
Core headline earnings increase 22% to R56.8m in six months to June, up from R46.4m
STADIO Holdings gained more than 13 percent on the JSE yesterday after the investment holding company reported double-digit growth in earnings for the six months to end-June.
Stadio, which has investments in higher education institutions, reported that core headline earnings increased 22 percent to R56.8 million, up from R46.4m, and core headline earnings per share increased 21 percent to 6.9 cents a share, up from 5.7c, compared with last year.
The group said core headline earnings reflected headline earnings adjusted for certain items that might distort the financial results from year to year and provided shareholders with a more consistent reflection of the group’s underlying performance.
The share rose to an intraday high of R1.58, up from Tuesday’s close of R1.39. It closed at R1.47 yesterday.
Stadio’s revenue increased 15 percent to R468.2m, up from R408.9m, boosted by a 10 percent increase in student numbers to 31 053 learners. By the end of August, the group had 33 586 students in its portfolio.
Stadio said 80 percent of its student body were enrolled in distance learning programmes, and reflected year-on-year growth of 12 percent to 24 784 students. On-campus students grew 3 percent year on year to 6 269.
“The Covid-19 pandemic has created a shift in the perception and attractiveness of distance learning. Coupled with the attractive price point of the distance learning offerings, it provides an opportunity for Stadio to actively pursue further growth opportunities,” the group said.
Stadio offered 97 accredited qualifications, and 37 programmes were in the development stage at the end of the reporting period.
Chief executive Chris Vorster said the results were pleasing given the extreme operational and business conditions during the period under review.
“Having said that, the Covid-19 pandemic and its full impact on the broader economy remains uncertain and might present further challenges in future. We nonetheless plan to continue managing the impact of the pandemic by focusing on and prioritising the health and safety of all staff and students, ensuring the continuation of the academic programme and maintaining the financial health of the business,” Vorster said.
As a result of the pandemic, the group has decided to delay the construction of the multi-faculty Stadio Centurion campus from 2021 to 2022.
Stadio said it had made substantial progress towards consolidating its programmes under a one Stadio brand:
“In May, the Higher Education Quality Committee approved the business transfer process, enabling the businesses of Lisof, Prestige Academy and Southern Business School to be transferred to Stadio, formerly Embury Institute for Higher Education, during 2020. This excludes Milpark, while the transfer of SA School of Motion Picture Medium and Live Performance will be done over a period of two years.”